What Are Israel’s Income Tax Brackets in 2026? Six Rates From 10% to 47%
For 2026 the Israel Tax Authority sets six rates from 10% to 47% on earned income, plus a 3% surtax above NIS 721,560 a year.
Six income tax rates, from 10% to 47%, apply to Israeli income from work or business in the 2026 tax year, under withholding tables the Israel Tax Authority updated in April 2026. Each rate applies only to the shekels inside its band. The rate is 10% on the first NIS 84,120 of annual taxable income and rises to 47% on every shekel above NIS 560,280. A further 3% surtax applies to taxable income above NIS 721,560 a year.
| Figure | What it counts | Monthly equivalent | Period |
|---|---|---|---|
| 10% | Income from work or business, up to NIS 84,120 a year | Up to NIS 7,010 | Tax year 2026 |
| 14% | Income from work or business, NIS 84,121 to NIS 120,720 a year | NIS 7,011 to NIS 10,060 | Tax year 2026 |
| 20% | Income from work or business, NIS 120,721 to NIS 228,000 a year | NIS 10,061 to NIS 19,000 | Tax year 2026 |
| 31% | Income from work or business, NIS 228,001 to NIS 301,200 a year | NIS 19,001 to NIS 25,100 | Tax year 2026 |
| 35% | Income from work or business, NIS 301,201 to NIS 560,280 a year | NIS 25,101 to NIS 46,690 | Tax year 2026 |
| 47% | Every further shekel of income from work or business above NIS 560,280 a year | Above NIS 46,690 | Tax year 2026 |
| 3% surtax | Additional rate on taxable income above NIS 721,560 a year | Above NIS 60,130 | Tax year 2026 |
Source: Israel Tax Authority, withholding tables for income tax on salary and wages, tax year 2026, April 2026 edition. All rates are marginal and apply to taxable income before tax credit points.
Six rates from 10% to 47% apply to 2026 earned income
The Israel Tax Authority publishes six marginal rates for income from personal exertion in the 2026 tax year, a term the tables use for income from work or business. A rate applies only to the income inside its band. A person whose annual taxable income passes NIS 84,120 pays 14% on the shekels above that line and 10% on the shekels below it.
Each monthly ceiling in the tables is one twelfth of the annual ceiling, so the monthly and annual columns above describe the same bands.
A 3% surtax applies above NIS 721,560 a year
The Israel Tax Authority states that an additional 3% applies to taxable income above NIS 721,560 a year in the 2026 tax year, which is NIS 60,130 a month. The tables list this rate separately from the six bands, as an addition on top of the 47% band. Since 2025, a further 2% has applied to taxable income from capital sources above the same threshold.
| Additional rate | Applies to | Threshold | Period |
|---|---|---|---|
| 3% | Taxable income above the threshold | NIS 721,560 a year, NIS 60,130 a month | Tax year 2026 |
| Further 2% | Taxable income from capital sources above the same threshold | NIS 721,560 a year | In force since 2025, stated for tax year 2026 |
Source: Israel Tax Authority, withholding tables for tax year 2026, April 2026 edition.
Passive income is taxed from 31%, not from 10%
Income that does not come from personal exertion enters at 31% in the 2026 tax year, the Israel Tax Authority states. The 10%, 14% and 20% bands apply only to income from work or business. Rent and other passive income taxed at marginal rates start at the 31% band.
| Rate | Annual taxable income not from work or business | Period |
|---|---|---|
| 31% | Up to NIS 301,200 | Tax year 2026 |
| 35% | NIS 301,201 to NIS 560,280 | Tax year 2026 |
| 47% | Above NIS 560,280 | Tax year 2026 |
Source: Israel Tax Authority, withholding tables for tax year 2026, April 2026 edition.
The upper thresholds are the same as those for earned income. The tables cover income taxed at marginal rates and do not set the rates for capital gains, dividends or interest.
One tax credit point is worth NIS 242 a month
One tax credit point is worth NIS 242 a month in the 2026 tax year, the Israel Tax Authority states. Points are deducted from the tax computed under the bands, so the rate in a band is a marginal rate and not the share of income a person pays. Credit points reduce tax only on Israeli earned income.
| Figure | What it counts | Published in | Period |
|---|---|---|---|
| NIS 242 | Value of one credit point, a month | Withholding tables, April 2026 | Tax year 2026 |
| NIS 2,904 | Value of one credit point, a year | New-immigrant leaflet, October 2026 | 2026 |
| 2.5 points | Points every male Israeli resident receives | New-immigrant leaflet, October 2026 | 2026 |
| 2.75 points | Points every female Israeli resident receives | New-immigrant leaflet, October 2026 | 2026 |
Source: Israel Tax Authority, both documents.
The Tax Authority’s 2026 leaflet gives new immigrants additional points for 54 months from arrival, on top of the resident points:
- 1 point for the first 12 months.
- 3 points for the next 18 months.
- 2 points for the next 12 months.
- 1 point for the final 12 months.
No Tax Authority table here counts taxpayers in each bracket
The Israel Tax Authority’s 2026 withholding tables set rates and thresholds only. They carry no count or share of taxpayers in any band and no average effective rate. No other Israeli publication cited on this page supplies one.
- Published in the tables: the six bands for earned income, annual and monthly; the three bands for passive income; the surtax and its threshold; the value of a credit point.
- Not published in the tables: the number of taxpayers in each band; the share of taxpayers in each band; an average effective tax rate.
Tables dated before April 2026 show the earlier 2026 bands
- The Economic Efficiency Law for the 2026 budget, published 31 March 2026, amended section 121 of the Income Tax Ordinance with effect from 1 January 2026. The 20% band now runs to NIS 228,000, the 31% band to NIS 301,200 and the 35% band from NIS 301,201. The Tax Authority republished its tables in April 2026 for that reason.
- Most amounts are not updated for inflation for 2025 to 2027 under section 120B, by a law of December 2024, so the 10% and 14% thresholds are unchanged from 2025.
- Every rate on this page is a marginal rate on taxable income before credit points, for the 2026 tax year only.
- The tables state the 3% surtax and the 2% capital-source rate as additions above NIS 721,560, separately from the six bands.
Questions readers ask
What is the highest income tax band in Israel in 2026?
The Israel Tax Authority publishes 47% as the highest band rate for 2026, on every shekel of earned income above NIS 560,280 a year. An additional 3% surtax applies to taxable income above NIS 721,560.
Is the 10% rate applied to all of a person’s income?
The 10% rate covers only the first NIS 84,120 of annual earned income in 2026, the Israel Tax Authority states. Income above that line is taxed at the rate of the band it falls in.
What is the monthly limit for the 10% rate?
The Israel Tax Authority puts the 10% band at up to NIS 7,010 a month for the 2026 tax year.
At what monthly income does the surtax start?
The Israel Tax Authority states that the 3% surtax applies to taxable income above NIS 60,130 a month in 2026, which is NIS 721,560 a year.
Did the 2026 brackets change during the year?
The Israel Tax Authority issued revised tables in April 2026 after an amendment published on 31 March 2026 widened the 20%, 31% and 35% bands with effect from 1 January 2026.
Why are the lowest thresholds the same as in 2025?
The Israel Tax Authority states that most amounts were not updated for inflation for 2025 to 2027, under a law of December 2024. The 10% and 14% thresholds therefore carry over from 2025.
Is rental income taxed at 10%?
Income not from work or business, such as rent taxed at marginal rates, starts at 31% up to NIS 301,200 a year in 2026, the Israel Tax Authority states.
Does the surtax apply to capital income?
The Israel Tax Authority states that the 3% surtax applies to all taxable income above NIS 721,560 in 2026. Since 2025, a further 2% has applied to income from capital sources above the same threshold.
How much is a tax credit point worth in 2026?
The Israel Tax Authority puts one credit point at NIS 242 a month in 2026. Its new-immigrant leaflet gives NIS 2,904 a year.
How many credit points does an Israeli resident receive?
The Israel Tax Authority states in its 2026 leaflet that every resident receives 2.5 points for men and 2.75 points for women.
How many extra credit points do new immigrants receive?
The Israel Tax Authority states that a new immigrant receives 1 point for 12 months, 3 for 18 months, 2 for 12 months and 1 for 12 months, 54 months in all.
Are new immigrants taxed on income earned abroad?
The Israel Tax Authority states that new immigrants are exempt for 10 years from tax on income earned abroad. Those arriving on or after 1 January 2026 keep the exemption but report that income.
Do the brackets cover capital gains or dividends?
The Israel Tax Authority publishes the 2026 bands for income taxed at marginal rates. Its withholding tables do not set the rates for capital gains, dividends or interest.
How many Israelis pay the top rate?
The Israel Tax Authority publishes no count of taxpayers by band in its 2026 withholding tables, and no average effective rate.
Sources
- Israel Tax Authority, 2026. Considering Aliyah? Here Are Some Benefits You May Be Eligible For. Spokesperson and Public Information Unit, English leaflet, file dated 20 October 2026, valid for 2026. https://www.gov.il/BlobFolder/generalpage/new-immigrants-france-081026/he/IncomeTax_new-immigrants-english-081026.pdf. Official or primary record.
- Israel Tax Authority, 2026. Withholding Tables for Income Tax on Salary and Wages from January 2026, updated April 2026. Assessment and Audit Division, Hebrew, file dated 15 April 2026. https://www.gov.il/BlobFolder/generalpage/income-tax-monthly-deductions-booklet/he/generalInformation_income-tax-monthly-deductions-booklet_monthly-deductions-booklet-2026.pdf. Official or primary record.
